I’ve spent the past few weeks reading about Bridgewater hedge fund founder Ray Dalio who is notorious for his management principles (PDF). The Economist and Barron’s have profiled Dalio recently and he updated his model of how the economy works. Dalio also did extensive interviews for Maneet Ahuja‘s The Alpha Masters and Jack D. Schwager‘s Hedge Fund Market Wizards. Dalio’s secret is to find 15 different and uncorrelated alpha streams; to separate alpha from beta exposure; to have a 6-18 month timeframe for holding; and to control transaction and execution costs.
Jack D. Schwager‘s book Market Wizards is mandatory reading for traders and out in a new, 2012 edition. Brenda Jubin’s review explains Market Wizard‘s impact, its interviewees, and its influence amongst traders. Schwager interviewed a diverse range of traders about their motivations, strategies and market insights. Schwager’s new book Hedge Fund Market Wizards will be published in May.
Market Wizards also reminds me of the fourth volume of interviews with futurists and strategic foresight practitioners that Richard Slaughter, Sohail Inayatullah, and Jose M. Ramos compiled for The Knowledge Base of Futures Studies.